Foriegn Company - Permanent establishment
This query is : Resolved
14 July 2011
A foreign company having a PE in india, having income from technical services..
What is the tax treatment for the same ?
Can we use section 115A or do we have to compute it @40% as per 44DA ??
Is there any beneficial clause in the DTAA ??
As per my understanding, the tax has to be computed as per 44DA @40% on the net profit..
Kindly advise...
What is the tax treatment for the same ?
Can we use section 115A or do we have to compute it @40% as per 44DA ??
Is there any beneficial clause in the DTAA ??
As per my understanding, the tax has to be computed as per 44DA @40% on the net profit..
Kindly advise...
15 July 2011
ASW PER THE FACTS GIVEN SECTION 44DA WILL APPLY
CA MANOJ GUPTA
JODHPUR
09828510543
CA MANOJ GUPTA
JODHPUR
09828510543
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15 July 2011
And is there any relief in the DTAA ?
15 July 2011
which DTAA are you talking of?
And the PE should be effectively connected with the provision of services by non-resident.
Anuj
0-9810106211
And the PE should be effectively connected with the provision of services by non-resident.
Anuj
0-9810106211
16 July 2011
Oh.. Its a UK based company..
Yes, the PE is effectively connected with the provision of services..
Yes, the PE is effectively connected with the provision of services..
16 July 2011
Actually DTAA is giving relief that the same Income will not be taxed twice, and here the income is accrued and received in India so section 44DA will apply.
16 July 2011
DTAA says that in case of Permanent Establishment ,income shall be taxed as per provisions of domestic law, hence sec 44DA will come in picture.
Also service tax liability shall also arise.
Anuj
+91-9810106211
Also service tax liability shall also arise.
Anuj
+91-9810106211
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